The present invention relates to a method of managing production quantity. More specifically, the present invention relates to a method of determining production quantity of a factory in a distribution system where products shipped from factories are stocked in a delivery center and then supplied to customers.
In general, products produced by a maker are supplied to the customers through distributors. Since a plurality of factories, dealers and customers are involved in the distribution of products, a flow of products in the distribution becomes very complicated.
FIG. 27 schematically shows an example of the flow of products in a typical distribution system. In FIG. 27, three factories A, B and C, two dealers A and B, and two customers A and B are indicated. In the example of FIG. 27, flows of products from the factories A and B to the customers A and B through the dealer A are indicated by arrows.
In regard to the customers A and B, the products are supplied from the factories A and B through a single dealer A. The dealer A has inventories to answer orders from the customers.
In a distribution system where factories and customers are related via a single delivery center (for example, the dealer A for the customers A and B in FIG. 27), a method or a system of managing production quantity which enables to reduce an inventory quantity of the single delivery center and to shorten a lead time is required.